Automotive Industry
Honda Halts Production at Mexico Assembly Plant Over Chip Shortage
Nissan and Mercedes are also affected by shortage.
TOKYO—Honda Motor Co. has halted operations at its assembly plant in Mexico due to a shortage of semiconductors stemming from tensions between the Netherlands and China over a Chinese chipmaker.
It marks the first confirmed case of the dispute impacting a Japanese automaker. Honda has also begun adjusting production in the United States and Canada, with reduced output in the North American market.
The idled Celaya plant in central Mexico, which assembles models such as the HR-V sport utility vehicle, has an annual production capacity of 200,000 vehicles. The plant was shut down on Tuesday.
Honda has declined to comment on the expected scale of production cuts or how long the shutdown might last.
The Dutch government decided at the end of September to place chipmaker Nexperia, a subsidiary of China's Wingtech Technology Co., under state control, citing flaws in its corporate governance.
China's government retaliated by blocking exports of Nexperia's products out of the country.
The European Automobile Manufacturers' Association warned of imminent disruption to automotive factory schedules from Nexperia-related chip shortages. "The industry is currently working through reserve stocks, but supplies are rapidly dwindling" and alternative suppliers will need months to build up stocks, the group said.
Nissan and Mercedes-Benz are among the carmakers trying to get to grips with an uncertain supply situation, with Nissan saying it had enough chips until the first week of November.
Some manufacturers in Brazil may have to halt operations within two to three weeks if the crisis continues, according to a government official there.Looking for quick answers on assembly and manufacturing topics? Try Ask ASM, our new smart AI search tool. Ask ASM
Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!
